caa a22 4500 445854596 CHVBK 20180317145424.0 cr unu---uuuuu 170323e20110501xx s 000 0 eng 10.1007/s10640-010-9426-x doi (NATIONALLICENCE)springer-10.1007/s10640-010-9426-x Jaeger William Department of Agricultural and Resource Economics, Oregon State University, 213 Ballard Extension Hall, 97331, Corvallis, OR, USA aut The Welfare Effects of Environmental Taxation [Elektronische Daten] [William Jaeger] Recent literature has investigated whether the welfare gains from environmental taxation are larger or smaller in a second-best setting than in a first-best setting. This question has mainly been addressed indirectly, by asking whether the second-best optimal environmental tax is higher or lower than the first-best Pigouvian rate. Even this indirect question has itself been approached indirectly, comparing the second-best optimal environmental tax to a proxy for its first-best value, marginal social damage (MSD). On closer examination, however, MSD becomes ambiguously defined and variable in a second-best setting making it an unreliable proxy for the Pigouvian rate. Given these observations, the current analysis reevaluates these welfare questions and finds that when compared directly to its first-best value, the second-best optimal environmental tax generally rises with increased revenue requirements. Even in cases where the second-best environmental tax is lower than its first-best value, the welfare gains may be greater than in a first-best setting. These results suggest that the marginal fiscal benefit (revenue recycling effect) exceeds the marginal fiscal cost (tax base effect) over a range of environmental tax rates that, for benchmark models, extends above the first-best Pigouvian rate. These findings reinforce the intuition that environmental policy complements rather than competes with the provision of other public goods. Springer Science+Business Media B.V., 2010 Double dividend nationallicence Excess burden nationallicence Optimal environmental tax nationallicence Pigouvian rate nationallicence Revenue recycling nationallicence Second-best nationallicence Tax base effect nationallicence Tax interaction effect nationallicence Environmental and Resource Economics Springer Netherlands 49/1(2011-05-01), 101-119 0924-6460 49:1<101 2011 49 10640 https://doi.org/10.1007/s10640-010-9426-x text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10640-010-9426-x text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Jaeger William Department of Agricultural and Resource Economics, Oregon State University, 213 Ballard Extension Hall, 97331, Corvallis, OR, USA aut NATIONALLICENCE 773 0- Environmental and Resource Economics Springer Netherlands 49/1(2011-05-01), 101-119 0924-6460 49:1<101 2011 49 10640 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer